Miclyn Express OffshorePareto Conference Presentation , 10-11 September 2014
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Business Overview
Headquartered in Singapore, MEO has been operating through predecessor entities since the 1970s
MEO has a proven track record of operational and safety excellence
MEO has long-standing customer relationships with a high degree of repeat business
MEO’s operations are supported by a strong, experienced and incentivised management team leading a workforce of over 2,000 employees
MEO is a leading provider of Offshore Support Vessels with a strong presence across South East Asia, the Middle East and Australia
MEO charters a diverse portfolio of vessels to a wide range of customers operating across all phases of the offshore oil and gas cycle, namely: exploration, development and production
Core Segments
Strong fleet of 155 vessels, diversified geographically and across sectors
Other Segments
Offshore Support Vessels (OSVs)
Wide ranging applications across the entire upstream offshore oil and gas
cycle
Crewboats
Tugs & Barges
Offshore production support /
transportation of personnel and critical
supplies
Transportation of material for offshore
development and civil construction activities
Express Offshore Solutions (EOS)
Coastal Survey Vessels
Third Party Vessels
Vessels Applications / User Industries
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Geographically Diversified Fleet
Superior services and operational excellence have cemented long-standing relationships with leading oil companies and service providers Relationships enhanced through investment in support infrastructure which helps to minimize downtime and enhance fleet reliability
Indonesia
Thailand
Saudi Arabia
United ArabEmirates
Bangladesh
Australia
Middle East39 Vessels30% of Total Fleet
South East Asia88 Vessels60% of Total Fleet
Australia(1)
13 Vessels10% of Total Fleet
Singapore
Qatar
No. of Vessels (as of June 2014)
SEA ME AUSUnder
construction Total
OSV 25 6 1 5 37
Crewboats 47 23 0 10 80
Tugs & Barges 16 10 8 - 34
Total 88 39 13(1) 15 155
Malaysia
Support centers Regional Offices Training CentersVessels Operating
Strong local presence through strategic support centres
Note: (1) Includes 4 CSVs in Australia
Brunei
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Infrastructure in key operating regions enhances our ability to service customers Strong relationships with blue chip clientele
Recognised Operator with a Blue Chip Client Base
Chevron best contractor awards
Eleven awards to Miclyn Express
Offshore’s vessels
operating for > 3 years without
injury
Three awards to Miclyn Express
Offshore’s vessels
operating for >2 years without
injury
One award to Micyln Express
Offshore vessels
operating for Chevron for >1
year without injury
One award for best HAZOBS
Support bases in proximity to offshore fields in Indonesia Thailand, Malaysia, Saudi Arabia, Qatar, UAE and Australia
Dedicated training centers in Indonesia and Thailand to meet local crewing challenges
Closer regional interaction with customers
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Business Strategy
● Well-positioned to benefit from shallow water offshore production growth
● Remain focused on South East Asia, Middle East and Australia, selectively enter into adjacent markets should opportunities arise
Focus on shallow water operations
● Minimum IRR of 15% on an unleveraged basis with a payback period of not more than five years for new investments
● Low asset concentration risk
A disciplined investment strategy
● Construct or purchase young OSVs and crewboat vessels based on identified customer demand in long-term charters
Vessel renewal and fleet expansion to meet identified customer demand
● Leverage relationships with core customers to cross-sell opportunities and expand relationships
Strengthen and grow customer relationships
● Apply operational best practices and maintain leading safety standards and procedures
Emphasis on safety, reliability and operational excellence
Continue to focus on shallow water operations, grow our business to be the provider of choice for our customers
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Safety Is Our Number 1 Priority
Truly world class safety statistics
MEO boasts an enviable Health and Safety track record. The company accomplished 15+ million man hours without Loss Time Injury (LTI) in 2013, a truly world class performance statistic
Note: (1) As of FY2013A
15+ million man hours
without LTI (1)
Robust systems and process embedded in MEO’s culture:
Top core value
Dedicated and passionate HSQE team, stationed locally within each operating region
Top down approach; top management actively engages with crews and contractors on a regular basis
Job card system empowers all employees to stop work that they deem to be unsafe
Constantly shaping new and innovative campaigns to improve and deliver sustainable, safe operations
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Highlights of last 12 months
Success in lifting forward orderbook from ~US$500m to ~US$750m
New appointment of Mr Venkatraman Sheshashayee (“Shesh”, ex Jaya) as Deputy CEO
Chevron award for two 85tn BP AHTS in Thailand (4+3 years), extension of strong relationship
Multiple contract wins in Kingdom of Saudi Arabia (crewboats and security vessels)
Entry into Brunei market with multi-vessels tender win for Brunei Shell Petroleum
Continued fleet expansion program, 21 vessels under construction
Growing number of contract backed capital deployment opportunities
Acquisition of Uniwise Towage in Thailand
Company delisted from ASX by CHAMP, Headland Capital and Management
Debut SGD 200m Bond raised to fund privatisation
USD 315m bilateral facility raised with DBS
Sale of Shipyard, non-core asset
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55.3
72.0
96.889.2
101.0
71
8084 84
80
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
0
10
20
30
40
50
60
70
80
90
FY10 FY11 FY12 FY13 FY14
US
$mU
tilis
atio
n (%
)
EBITDA (pre disposals) Utilisation
Strong Earnings Growth in past 5 years
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5 59
161
1111
36
76
117
12
27 27
11
0
5
10
15
20
25
30
35
40
<3 months 3 months - 1 years 1 - 3 years 3 - 6 years > 6 years
Total Others Tugs and Barges
Note: (1) Only includes contracts of core businesses, data as of 30 June 2014; (2) Total contracted revenues backlog include US$277m from core businesses and US$40m from other businesses. Total extension options backlog include US$122m from core businesses and US$14m from other businesses.
● 70% of our charter contracts are 1 year or longer with extension options● Average length of contracts is 3.4 years for OSVs and 3.7 years for crewboats● Chevron, Saudi Aramco and the PTT Group are MEO’s legacy customers for 15 to 30 years● Contracted revenues and tenor of charters reflect customers’ perception of the quality and utility of our fleet● Total contracted and options backlog of US$209m for FY 2015
Contracted Revenue with High Earnings VisibilityN
umbe
r of C
ontr
acts
Contract Value US$3.1m US$15.5m US$63.4m US$324.0m US$42.0m
Total Contracted Revenues and Options Backlog: US$730m(2)
Tenor of Vessel Charter Contracts(1)
Long term contracts across the fleet provide high degree of earnings visibility
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Loan package refinanced by DBS;
US$150m Term Loan
US$100m RCF
US$ 50m CAPEX facility (undrawn)
US$15m FX/BG facilities
Minority shareholders bought out with proceeds of S$200m bond raising
S$200m bond hedged to US$ (US$159m equivalent)
Acquisition of Uniwise Towage for US$18.9m
Further investment in new vessels against disciplined investment criteria (minimum 15% unlevered IRR)
Strong contract backlog (>US$700m) to support future operating cashflows; ability to service debt and continue investment in new assets
Note:
1 FY14 EBITDA, excluding the impact of one-off adjustments relating to privatisation and disposal of shipyard2 FY13 EBITDA, excluding the US$4.6m Iran provision3 Net Debt / (Net Debt + Equity)
14.6 19.3
70.2 26.0
335.3 317.1
148.9 139.2
6.8 18.9 6.9 68.7
16.6 1.7 0.2
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0 FY14 FY13
Net Debt (US$m) 373.8 199.3
Net Debt / EBITDA 3.91 2.52
Gearing (%)3 47.3% 34.3%
Well Funded, Strong Cash Delivery
Ability to service new debt package and fund growth
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Solid execution capability
Financial capacity to fund growth
Well positioned in a growing industry
Attractive pipeline of opportunities
Proven Operational Excellence
Strong balance sheet
Summary
Clear strategy for future growth
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Reliance on Third Party Information
The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by Miclyn Express Offshore Limited (“Miclyn Express Offshore”).
Forward Looking Statements
Some of the information contained in this document may constitute forward-looking statements that are subject to various risks and uncertainties. Nothing in this document is a promise or representation as to the future. Statements or assumptions in this document as to future matters may prove to be incorrect. Miclyn Express Offshore does not make any representation or warranty as to the accuracy of such statements or assumptions. You acknowledge that circumstances may change and the contents of this document may become outdated as a result. You also acknowledge that no audit or review has been undertaken by an independent third party of the assumptions, data, results, calculations and forecasts contained in or referred to in this document. You should make your own independent assessment of the information.
No Warranties
We makes no warranty, express or implied, nor assumes any responsibility in its contents for its accuracy, completeness, its use for any general of particular purpose, nor that such items or use of such items would not violate or infringe rights of others.
No Offer of Securities
Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell Miclyn Express Offshore securities in any jurisdiction.
Pro-Forma Financial Information
References to pro forma financials exclude any exceptional items. A reconciliation to statutory financials is contained within the prospectus, available at our website www.miclynexpressoffshore.com.
Important notice and disclaimer
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Contact
For further enquiries, please contact:
Adam Clayton
Corporate Finance and Group Commercial Head
Miclyn Express Offshore
Tel: +65 6829 6122
Mob: +65 8298 5155
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